Conversion to T+2 settlement is now underway:
The implementation of T+2 settlement formally takes place next week, on Tues. Sept. 5, but the transition effectively begins on Mon. Aug. 28.
The Canadian Capital Markets Association (CCMA) has published a support plan stressing that the move to shorter settlement cycles “is more than a one-day event.” The transition starts with the last few days of T+3 trading, it notes, and ends Sept. 8, “assuming everything goes as planned.”
The shift to T+2 involves all segments of the investment industry, including brokerage firms, investors, exchanges and other components of trading infrastructure.
It’s a good move, reducing counterparty exposure during the pre-settlement period, but doesn’t go far enough. Why isn’t T+1 standard?
The newest crypto-currency is WhopperCoins:
Fast-food chain Burger King has launched its own crypto-currency, called WhopperCoin, in Russia.
Customers will be able to claim one coin for every rouble (1.3p) they spend on the Whopper sandwich.
Russians will be able to buy a Whopper with the virtual cash, once they have amassed 1,700 whoppercoins.
The company said it would release Apple and Android apps next month so people could save, share and trade their wallet full of whoppercoins.
It’s a great idea – I don’t know what, if anything, Aimia’s doing to exploit this new technology.
The OSC Superannuation Company, which has the official name of Canadian Foundation for Advancement of Investor Rights, “FAIR Canada” for short, has appointed a new Executive Director:
Fair Canada Chair, Ermanno Pascutto, announced that Frank Allen, a seasoned securities lawyer and executive leader, has been appointed its Executive Director. Frank begins his role effective immediately.
…
Frank also acted as the General Counsel at the Ontario Securities Commission and played a leading role in the development and drafting of the OSC’s rule protecting minority security holders in related party transactions.
Mr. Allen’s tenure at the OSC was from January 1988 to January 1990, thus overlapping with FAIR’s founder and Chair Ermanno Pascutto’s tenure as OSC Executive Director from 1984-89.
Long term readers will remember that FAIR and the OSC have been in bed together for a long time – I regard FAIR as nothing more than a stalking horse for the OSC. However, there is a chance – just a chance, but it’s there! – that we will soon have seen the last of FAIR, as indicated by their Annual Report to June 30, 2016:
Click for Big
We’ll see what happens!
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
|||||||
| Index | Mean Current Yield (at bid) |
Median YTW |
Median Average Trading Value |
Median Mod Dur (YTW) |
Issues | Day’s Perf. | Index Value |
| Ratchet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -1.2071 % | 2,333.0 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -1.2071 % | 4,280.9 |
| Floater | 3.71 % | 3.76 % | 124,463 | 17.87 | 3 | -1.2071 % | 2,467.1 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0709 % | 3,079.6 |
| SplitShare | 4.73 % | 4.17 % | 51,743 | 1.32 | 5 | -0.0709 % | 3,677.8 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0709 % | 2,869.5 |
| Perpetual-Premium | 5.40 % | 4.81 % | 53,980 | 5.87 | 17 | 0.0255 % | 2,782.9 |
| Perpetual-Discount | 5.31 % | 5.34 % | 62,043 | 14.87 | 20 | 0.0234 % | 2,926.6 |
| FixedReset | 4.38 % | 4.43 % | 148,656 | 6.32 | 98 | -0.5103 % | 2,383.3 |
| Deemed-Retractible | 5.07 % | 5.51 % | 103,167 | 6.03 | 31 | 0.0653 % | 2,872.2 |
| FloatingReset | 2.63 % | 3.08 % | 40,062 | 4.18 | 9 | -0.2752 % | 2,615.1 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| BAM.PR.C | Floater | -1.77 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-08-29 Maturity Price : 13.87 Evaluated at bid price : 13.87 Bid-YTW : 3.76 % |
| BMO.PR.Y | FixedReset | -1.64 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-08-29 Maturity Price : 22.65 Evaluated at bid price : 23.36 Bid-YTW : 4.44 % |
| IFC.PR.C | FixedReset | -1.56 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.05 Bid-YTW : 5.79 % |
| CM.PR.O | FixedReset | -1.53 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-08-29 Maturity Price : 21.46 Evaluated at bid price : 21.81 Bid-YTW : 4.44 % |
| TRP.PR.H | FloatingReset | -1.50 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-08-29 Maturity Price : 14.90 Evaluated at bid price : 14.90 Bid-YTW : 3.31 % |
| PWF.PR.P | FixedReset | -1.48 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-08-29 Maturity Price : 16.60 Evaluated at bid price : 16.60 Bid-YTW : 4.53 % |
| RY.PR.J | FixedReset | -1.44 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-08-29 Maturity Price : 22.63 Evaluated at bid price : 23.26 Bid-YTW : 4.47 % |
| MFC.PR.G | FixedReset | -1.43 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.41 Bid-YTW : 5.13 % |
| MFC.PR.K | FixedReset | -1.35 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.12 Bid-YTW : 6.41 % |
| BAM.PF.B | FixedReset | -1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-08-29 Maturity Price : 21.92 Evaluated at bid price : 22.49 Bid-YTW : 4.66 % |
| TRP.PR.D | FixedReset | -1.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-08-29 Maturity Price : 21.48 Evaluated at bid price : 21.83 Bid-YTW : 4.51 % |
| TRP.PR.C | FixedReset | -1.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-08-29 Maturity Price : 16.24 Evaluated at bid price : 16.24 Bid-YTW : 4.54 % |
| MFC.PR.L | FixedReset | -1.20 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 20.65 Bid-YTW : 6.76 % |
| MFC.PR.F | FixedReset | -1.18 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 16.80 Bid-YTW : 8.57 % |
| BAM.PF.E | FixedReset | -1.16 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-08-29 Maturity Price : 21.97 Evaluated at bid price : 22.24 Bid-YTW : 4.70 % |
| BMO.PR.T | FixedReset | -1.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-08-29 Maturity Price : 21.34 Evaluated at bid price : 21.65 Bid-YTW : 4.37 % |
| BAM.PR.K | Floater | -1.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-08-29 Maturity Price : 13.87 Evaluated at bid price : 13.87 Bid-YTW : 3.76 % |
| TRP.PR.B | FixedReset | -1.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-08-29 Maturity Price : 15.10 Evaluated at bid price : 15.10 Bid-YTW : 4.50 % |
| TD.PF.D | FixedReset | -1.13 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-08-29 Maturity Price : 22.79 Evaluated at bid price : 23.61 Bid-YTW : 4.44 % |
| EML.PR.A | FixedReset | -1.12 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2021-04-17 Maturity Price : 25.00 Evaluated at bid price : 26.50 Bid-YTW : 4.18 % |
| TD.PF.A | FixedReset | -1.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-08-29 Maturity Price : 21.36 Evaluated at bid price : 21.68 Bid-YTW : 4.38 % |
| BAM.PR.X | FixedReset | -1.08 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-08-29 Maturity Price : 17.35 Evaluated at bid price : 17.35 Bid-YTW : 4.64 % |
| CU.PR.C | FixedReset | -1.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-08-29 Maturity Price : 21.31 Evaluated at bid price : 21.31 Bid-YTW : 4.64 % |
| IFC.PR.A | FixedReset | -1.06 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 19.69 Bid-YTW : 7.21 % |
| RY.PR.Z | FixedReset | -1.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-08-29 Maturity Price : 21.34 Evaluated at bid price : 21.64 Bid-YTW : 4.35 % |
| RY.PR.M | FixedReset | -1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-08-29 Maturity Price : 22.39 Evaluated at bid price : 22.96 Bid-YTW : 4.40 % |
| ELF.PR.G | Perpetual-Discount | -1.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-08-29 Maturity Price : 22.09 Evaluated at bid price : 22.37 Bid-YTW : 5.37 % |
| BMO.PR.W | FixedReset | -1.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-08-29 Maturity Price : 21.42 Evaluated at bid price : 21.42 Bid-YTW : 4.41 % |
| MFC.PR.N | FixedReset | -1.01 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.64 Bid-YTW : 6.09 % |
| RY.PR.H | FixedReset | -1.00 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-08-29 Maturity Price : 21.38 Evaluated at bid price : 21.70 Bid-YTW : 4.38 % |
| POW.PR.D | Perpetual-Discount | 1.88 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-08-29 Maturity Price : 24.09 Evaluated at bid price : 24.35 Bid-YTW : 5.19 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| TRP.PR.K | FixedReset | 129,575 | YTW SCENARIO Maturity Type : Call Maturity Date : 2022-05-31 Maturity Price : 25.00 Evaluated at bid price : 25.99 Bid-YTW : 4.00 % |
| RY.PR.B | Deemed-Retractible | 100,200 | YTW SCENARIO Maturity Type : Call Maturity Date : 2017-09-28 Maturity Price : 25.00 Evaluated at bid price : 25.07 Bid-YTW : 2.08 % |
| GWO.PR.H | Deemed-Retractible | 80,191 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.38 Bid-YTW : 6.12 % |
| IFC.PR.F | Deemed-Retractible | 53,392 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.79 Bid-YTW : 5.51 % |
| PWF.PR.T | FixedReset | 33,788 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-08-29 Maturity Price : 22.62 Evaluated at bid price : 23.05 Bid-YTW : 4.26 % |
| BAM.PR.K | Floater | 32,048 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-08-29 Maturity Price : 13.87 Evaluated at bid price : 13.87 Bid-YTW : 3.76 % |
| There were 13 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| BAM.PF.E | FixedReset | Quote: 22.24 – 22.72 Spot Rate : 0.4800 Average : 0.3061 YTW SCENARIO |
| EML.PR.A | FixedReset | Quote: 26.50 – 26.90 Spot Rate : 0.4000 Average : 0.2517 YTW SCENARIO |
| TRP.PR.G | FixedReset | Quote: 23.79 – 24.20 Spot Rate : 0.4100 Average : 0.2811 YTW SCENARIO |
| TRP.PR.D | FixedReset | Quote: 21.83 – 22.17 Spot Rate : 0.3400 Average : 0.2118 YTW SCENARIO |
| BMO.PR.Y | FixedReset | Quote: 23.36 – 23.81 Spot Rate : 0.4500 Average : 0.3231 YTW SCENARIO |
| BAM.PR.R | FixedReset | Quote: 19.86 – 20.25 Spot Rate : 0.3900 Average : 0.2674 YTW SCENARIO |